{"id":40385,"date":"2026-02-15T06:04:33","date_gmt":"2026-02-15T06:04:33","guid":{"rendered":"https:\/\/ipp-news.com\/?p=40385"},"modified":"2026-02-15T06:04:33","modified_gmt":"2026-02-15T06:04:33","slug":"india-plans-ai-data-city-on-staggering-scale","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=40385","title":{"rendered":"India plans AI &#8216;data city&#8217; on staggering scale"},"content":{"rendered":"<div>As India races to narrow the artificial intelligence gap with the United States and China, it is planning a vast new &#8220;data city&#8221; to power digital growth on a staggering scale, the man spearheading the project says.<\/p>\n<p>&#8220;The AI revolution is here, no second thoughts about it,&#8221; said Nara Lokesh, information technology minister for Andhra Pradesh state, which is positioning the city of Visakhapatnam as a cornerstone of India&#8217;s AI push.<\/p>\n<p>&#8220;And as a nation&#8230; we have taken a stand that we&#8217;ve got to embrace it,&#8221; he told AFP ahead of an international AI summit next week in New Delhi.<\/p>\n<p>Lokesh boasts the state has secured investment agreements of $175 billion involving 760 projects, including a $15 billion investment by Google for its largest AI infrastructure hub outside the United States.<\/p>\n<p>And a joint venture between India&#8217;s Reliance Industries, Canada&#8217;s Brookfield and US firm Digital Realty is investing $11 billion to develop an AI data centre in the same city.<\/p>\n<p>Visakhapatnam \u2014 home to around two million people and popularly known as &#8220;Vizag&#8221; \u2014 is better known for its cricket ground that hosts international matches than for cutting-edge technology.<\/p>\n<p>But the southeastern port city is now being pitched as a landing point for submarine internet cables linking India to Singapore.<\/p>\n<p>&#8220;The data city is going to come in one ecosystem&#8230; with a 100-kilometre (60-mile) radius,&#8221; Lokesh said. For comparison, Taiwan is roughly 100 kilometres wide.<\/p>\n<p>Lokesh said the plan goes far beyond data connectivity, adding that his state had &#8220;received close to 25 per cent of all foreign direct investments&#8221; in India in 2025.<\/p>\n<p>&#8220;It&#8217;s not just about the data centres,&#8221; he explained while outlining a sweeping vision of change, with Andhra Pradesh offering land at one US cent per acre (three per hectare) for major investors.<\/p>\n<p>&#8220;I&#8217;m chasing the companies that make those servers that go sit in those data centres, the companies that make the entire air conditioning, the water-cooling system &#8212; the whole nine yards.&#8221;<\/p>\n<p>The 43-year-old, Stanford-educated minister is the son of Andhra Pradesh Chief Minister N. Chandrababu Naidu, who helped turn Hyderabad into a major technology hub that is dubbed &#8220;Cyberabad&#8221;.<\/p>\n<p>They are allies of Prime Minister Narendra Modi, who will host the AI Impact Summit from Monday.<\/p>\n<p>India is now third in a global AI power ranking &#8212; sitting above South Korea and Japan &#8212; based on more than 40 indicators from patents to private funding calculated by Stanford University&#8217;s Institute for Human-Centred AI.<\/p>\n<p>With more than a billion internet users, India has seen a surge of investment as generative AI players seek inroads to the world&#8217;s most populous country.<\/p>\n<p>Microsoft said in December it will invest $17.5 billion to help build the country&#8217;s artificial intelligence infrastructure, with CEO Satya Nadella calling it the firm&#8217;s &#8220;largest investment ever in Asia&#8221;.<\/p>\n<p>But critics say India lags in access to high-end computing power or commercial AI deployment, and remains more a consumer than creator of the cutting-edge technology.<\/p>\n<p>Some question whether data centers will create meaningful employment when up and running, but Lokesh rejects that.<\/p>\n<p>&#8220;Every industrial revolution has always created more jobs than it has displaced,&#8221; he said.<\/p>\n<p>&#8220;But it has created those jobs in countries that have embraced the industrial revolution.&#8221;<\/p>\n<p>Lokesh argues that the jobs and economic benefits would more than compensate for the giveaway cost of land.<\/p>\n<p>He said the state government had accounted for the vast electricity and water demands for the energy-hungry industry, and would tap &#8220;surplus water&#8221; that drains into the Bay of Bengal to cool the massive data centres.<\/p>\n<p>&#8220;It&#8217;s a crime that so much water during monsoons goes into our oceans,&#8221; he said.<\/p>\n<p>He cited China as an inspiration &#8212; admiring how India&#8217;s rival had &#8220;been able to systematically bring people out of poverty&#8221; at speed.<\/p>\n<p>The state&#8217;s plan to create industrial clusters was something he had &#8220;learned from China&#8221;.<\/p>\n<p>With a target of six gigawatts of data centre capacity &#8212; three already signed and another three in the pipeline &#8212; Andhra Pradesh is betting that speed and scale will give it an edge.<\/p>\n<p>New Delhi last year agreed to &#8220;in-principle approval&#8221; for six 1.2 GW nuclear power plants at Kovvada in Andhra Pradesh.<\/p>\n<p>&#8220;We are on a journey,&#8221; Lokesh said. &#8220;We will execute these projects at a pace that the country has never seen&#8221;.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>As India races to narrow the artificial intelligence gap with the United States and China, it is planning a vast new &#8220;data city&#8221; to power digital growth on a staggering scale, the man spearheading the project says. &#8220;The AI revolution is here, no second thoughts about it,&#8221; said Nara Lokesh, information technology minister for Andhra [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-40385","post","type-post","status-publish","format-standard","hentry","category-english-news"],"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/40385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40385"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/40385\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}